Tax Strategy for Morliny Foods
19 November 2024

Scope

At Morliny Foods, we are committed to managing our tax affairs responsibly and transparently. This document outlines our tax strategy in compliance with Schedule 19 of the Finance Act 2016 and applies to all entities within our group operating in the UK. The strategy aligns with our business goals, corporate values, and regulatory obligations.

Compliance with Tax Legislation

We aim to fully comply with all applicable tax laws and regulations in the UK and other jurisdictions in which we operate. This includes:

Accurately calculating, reporting, and paying all taxes due, including corporate tax, VAT, employment taxes, and withholding taxes.
• Maintaining clear and complete records to support all tax filings.
• Regularly reviewing changes in tax legislation to ensure ongoing compliance.

Tax Governance and Risk Management

Our approach to tax governance and risk management is overseen by the Board of Directors and implemented by our finance and tax teams. Key principles include:

• Responsibility: Ultimate responsibility for tax governance lies with the Board, with day-to-day management delegated to our Senior Accounting Officers and external advisors.
• Risk Assessment: We identify and assess tax risks across the group to ensure they are managed appropriately and do not compromise our reputation or financial performance.
• Controls: We maintain robust internal controls and processes to mitigate tax risks, supported by periodic reviews.

Approach to Tax Planning

Our approach to tax planning reflects our commitment to ethical and sustainable practices:

• Business-Driven: We only undertake tax planning that aligns with our genuine commercial and economic activities.
• Transparency: We disclose tax positions clearly to relevant tax authorities and do not engage in artificial arrangements designed solely for tax avoidance.
• Incentives and Reliefs: Where applicable, we seek to benefit from government-sponsored tax incentives and reliefs, in a manner consistent with the intention of the legislation.

Attitude Toward Tax Risk

We adopt a low-risk approach to tax matters, recognizing the importance of tax compliance to our stakeholders. Specifically:

• We aim to minimize uncertainty by seeking professional advice on complex tax issues.
• Where ambiguity exists in tax legislation, we engage proactively with third-party tax specialists to ensure compliance with tax legislation.
• We strive to ensure all intercompany transactions are conducted on an arm’s-length basis and supported by appropriate transfer pricing documentation.

Relationship with HMRC

We value an open and constructive relationship with HMRC, characterized by:

• Transparency: Prompt and accurate disclosure of relevant information to facilitate HMRC’s understanding of our tax affairs.
• Proactivity: Early engagement with HMRC on significant transactions or potential areas of uncertainty.
• Respect: Commitment to resolving any disagreements in a professional and cooperative manner.

Commitment to Transparency

As part of our broader commitment to good corporate citizenship, we aim to be transparent about our tax contributions. This includes:

• Publishing information on taxes paid in the UK and globally as required by law or best practice.
• Aligning with international initiatives to promote tax transparency, such as the OECD’s Base Erosion and Profit Shifting (BEPS) framework.

Governance and Review

This tax strategy is reviewed annually by the Board and updated as necessary to reflect changes in business operations or tax legislation. It applies to all UK entities within the group.